What happens if you’re not insured and you have a car accident?


Being involved in a car accident can be traumatic – your day changes drastically in what’s usually a split moment. Your car, or someone else’s, could be damaged, and there might even be injuries. It’s overwhelming enough, but what happens if you don’t have insurance? 

Learn more about your rights and what you need to do if you find yourself in a situation like this. 

Determine your level of insurance  

First things first: you'll likely have some level of insurance. That’s because, at a minimum, you’re legally required to have Compulsory Third party Insurance (CTP). In most states it’s included in your car registration, but there are some exceptions. If you live in New South Wales, you’ll need to purchase your CTP Green Slip separately, and the same goes for CTP in South Australia.

CTP covers your liability, including the liability of other drivers in your vehicle, for injuries caused to others in a motor vehicle accident.

CTP doesn’t, however, cover you for damage, either sustained to your vehicle or to another person’s vehicle or property. If you’re looking for additional protection, AAMI has a number of car insurance options that might suit you.

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When you’re not at fault

Generally, the person who’s at fault for causing the accident will be responsible for paying any costs. This usually includes any repairs required for your vehicle or the replacement of damaged property, in addition to hiring a rental car for your use while yours is at the mechanic.

What this means in practice is that you’ll need to send the driver at fault a letter from a registered mechanic, which itemises the estimated cost of repair. In the event that they have insurance, they’ll supply this letter to their insurer. It’s likely that at this point you’ll be working with their insurance company towards any compensation.

These situations can be tricky. If you need a hand, you may want to think about seeking out legal advice. There are resources available for you in this situation so it can be useful to reach out to an organisation like Legal Aid.

When you’re at fault

On the other hand, if you’re the driver at fault you may be required to pay any costs for damage sustained to the other person’s vehicle or property, which can also include covering towing fees or a hire car. If this is the case, you’ll usually receive a letter of demand or a court form from them. Bear in mind that you can ask them to supply quotes, as evidence of the costs they’re requesting you pay, and to put forward a counter claim.

If you’re unsure about your rights, and whether you need to pay the full amount, it could be a good idea to seek out legal advice.

Why get AAMI car insurance? 

Driving without any optional car insurance leaves you vulnerable to costs associated with a motor accident you’re involved in. For instance, any damage you do to another vehicle.

We pride ourselves on ensuring our customers are satisfied with their policies, so here are just a few benefits you can expect when you have a car insurance policy with AAMI:

  • a seamless and transparent process if you need to make a claim 
  • an AAMI Lifetime Repair Guarantee for the workmanship and materials authorised by AAMI in the repair of your car. Check your relevant Product Disclosure Statement for more information on repairs and replacements

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AAMI Car Insurance, Motorcycle Insurance, NSW and ACT CTP Insurance, and Caravan Insurance are issued by AAI Limited ABN 48 005 297 807 AFSL 230859 (AAI) trading as AAMI. Any advice has been prepared without taking into account your particular objectives, financial situation or needs, so you should consider whether it is appropriate for you before acting on it. Please read the relevant Product Disclosure Statement before you make any decision regarding this product. The Target Market Determination is also available.